Category: OPEC (Organization of the Petroleum Exporting Countries)

UPDATE 1-Venezuela 2016 inflation hits 800 pct, GDP contracts nearly 19 pct

Jan 20 Venezuelan consumer prices rose 800 percent in 2016 while the economy shrank 18.6 percent, according to preliminary central bank figures seen by Reuters, the sharpest economic contraction in 13 years and the worst inflation reading on record. An extended slump in oil prices has turned the OPEC nation’s once-prosperous economy into a mirror of the latter day Soviet Union, with rampant product shortages forcing some to skip meals and wait hours in food lines.

Saudi economy will barely grow this year, IMF says

The organization expects the Saudi economy to grow 0.4% this year, down from a forecast of 2% just three months ago, because of OPEC oil production cuts. Saudi Arabia and other major oil producers agreed to the cuts in December to ease a glut of supply that had caused prices to collapse.

Oil Falls on China Concerns, Down for the Week on OPEC Doubts

Oil prices fell on Friday and ended the week 3 percent lower on lingering doubts over the extent of OPEC cuts, with sentiment worsened by concerns over the economic health of the world’s second-largest oil consumer, China, after it reported the steepest falls in overall exports since 2009. Record Chinese crude imports of 8.6 million barrels per day in December helped to buoy prices somewhat, traders said, but they could not hide underlying fears over the overall health of the world’s second-biggest economy.

How OPEC’s Production Cuts Are Affecting the U.S. Oil Market

For the first time in years, an oil production cut that OPEC members have promised is actually going through, and having its desired effect. In this clip from Industry Focus: Energy , Motley Fool analysts Sean O’Reilly and Taylor Muckerman talk about how the cartel’s move to ease back on crude output is affecting U.S. drillers and energy services companies so far, and some industry trends we’re probably going to see as a result.

Iraq Confirms Oil-Output Cut Even as Scheduled Exports Rise

Iraq has reduced its oil production by 160,000 barrels a day and will comply with cuts it agreed to make under an OPEC output deal, Oil Minister Jabbar Al-Luaibi said, even as ship loading data suggested that exports are set to increase next month. The Persian Gulf producer is poised to ship 3.64 million barrels a day of crude oil in February from its ports in southern Basra province, according to a loading program obtained by Bloomberg, more than its December average of 3.51 million barrels a day, which itself was a record high.

Why Exxon Mobil Will Have A Break-Out Year

As XOM ramps up its low-cost production fully, it will be able to enhance both its revenue and earnings in light of a stronger oil pricing environment. XOM is set to fully ramp-up 450,000 boepd of low-cost production this year, which is expected to achieve break-even at an oil price of only $40 per barrel.

Canada Stocks-TSX rises on resource gains, nearing all-time high

TORONTO, Jan 5 Canada’s main stock index on Thursday extended a rally that brought it near to an all-time high, as resource stocks rose with higher commodity prices and financial shares pushed higher. The most influential movers on the index included two of the world’s largest gold producers, with Barrick Gold jumping 5 percent to C$22.90 and Goldcorp Inc up 3.3 percent to C$19.63 as gold prices touched their highest in four weeks.

Non-OPEC Voluntary Cuts Unraveling Before They Even Start

With much fanfare, OPEC held a press conference on December 10th at its headquarters in Vienna to announce that an agreement had been made with various non-OPEC producers: Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and Republic of South Sudan commit to reduce their respective oil production, voluntarily or through managed decline, in accordance with an accelerated schedule. The combined reduction target was agreed at 558,000 barrels a day for the aforementioned producers.”

Libya Oil-Export Terminal Said to Re-Open as Output Rises

Libya is re-opening its last major oil-export terminal that shut amid the conflict hobbling output in the country with Africa’s largest crude reserves. The Zawiya terminal is preparing to resume exports after the pipeline supplying it was re-opened, an official at the state-run National Oil Corp. said Wednesday, asking not to be identified for lack of authorization to speak to news media.

Libya’s Oil Revival Gathers Pace to Highlight Risks on OPEC Deal

Libya, the holder of Africa’s biggest crude reserves, is ramping up output from its biggest oil field again after two years of internal conflict, the latest reminder of just how vulnerable OPEC’s quest to clear a global crude glut might be. The Sharara deposit in the Libya’s south west will ship almost 1.9 million barrels this month from its Zawiya port near Tripoli, according to a loading program obtained by Bloomberg.

Oil prices rise as markets eye OPEC, non-OPEC production cuts

Oil prices rose in the first trading hours of 2017, buoyed by hopes that a deal between OPEC and non-OPEC members to cut production, which kicked in on Sunday, will be effective in draining the global supply glut. International Brent crude oil prices LCOc1 were trading up 31 cents, or 0.55 percent, at $57.13 a barrel at 0203 GMT on Tuesday – close to last year’s high of $57.89 per barrel, hit on Dec. 12. Oil markets were closed on Monday after the New Year’s holiday.

New year, new gas prices

Sunday marked the first day of our state’s new gas tax. It’s 7 cents a gallon more than before, but we’re seeing a much bigger jump than that here in mid-Michigan.

Royal treasures: Queen’s jeweller is put up for sale

What the This is Money team would like to see in 2017: From stamp duty cuts, to customers losing misplaced loyalty and rates to rise Which is the best used family saloon for under A 10k? We put an Audi, BMW, Mercedes and VW to the test Plans for 14 garden villages and 200,000 homes in some of Britain’s most desirable areas are given the green light Round pound coins will cease to be legal tender in OCTOBER: New 12-sided A 1 will hit the streets in March – as will new Jane Austen A 2 M&S shoppers face price hikes of ‘up to 15% on basic goods’ despite a pledge to shield customers from the falling value of the pound What would you do with a windfall worth A 100,000? Five experts reveal how they would invest a big lump sum How to soften the blow of rising rail fares: As train ticket prices rise once more, we deliver tips to save money Pain at the pumps: Price of petrol may soar to 125p a … (more)

O2 plans A 10bn stock market listing in UK

What the This is Money team would like to see in 2017: From stamp duty cuts, to customers losing misplaced loyalty and rates to rise Which is the best used family saloon for under A 10k? We put an Audi, BMW, Mercedes and VW to the test Plans for 14 garden villages and 200,000 homes in some of Britain’s most desirable areas are given the green light Round pound coins will cease to be legal tender in OCTOBER: New 12-sided A 1 will hit the streets in March – as will new Jane Austen A 2 M&S shoppers face price hikes of ‘up to 15% on basic goods’ despite a pledge to shield customers from the falling value of the pound What would you do with a windfall worth A 100,000? Five experts reveal how they would invest a big lump sum How to soften the blow of rising rail fares: As train ticket prices rise once more, we deliver tips to save money Pain at the pumps: Price of petrol may soar to 125p a … (more)

5 countries that could destroy OPEC’s game plan

As an apparent wave of populism sweeps through the world, Theresa May prepares to trigger Article 50, and fears of a trade war between China and the U.S grow, financial markets are on edge. But alongside this uncertainty, there has been some good news for markets as well, with oil markets moving towards rebalancing.

Here are the best and worst investments from 2016

With the S&P/TSX composite index up roughly 18 per cent, the S&P/TSX venture up 44 per cent and the major U.S. indices all hitting record highs, you had to have a really good year in 2016 to stand out from the pack. And, from the Russian ruble to the mighty marijuana plant, there were plenty of assets that did just that.

COMMODITIES-Oil, metals post stellar 2016 gains on output cuts, demand hopes

SINGAPORE, Dec 30 Crude oil, rubber and metals were set to end 2016 on Friday with strong gains, bouncing back from several years of losses on the back of output cuts and expectations of firmer demand. Crude oil output cuts announced by OPEC, stronger-than-expected demand in top commodities market China and expectations of higher infrastructure spending in the United States after the victory of Republican candidate Donald Trump all boosted prices.

More oil possible from Nigeria

A minority player in OPEC-member Nigeria said it was able to stimulate crude oil production at one of its operating areas by about 15 percent. Africa-focused San Leon Energy, which lists its headquarters in London, holds a minority stake in oil mining lease No.

Chinese oil metric paints mixed demand picture

A metric used to gauge Chinese oil demand was slightly higher than last year, though there are signs economic performance is slowing, an industry report said. According to economists with the Organization of Petroleum Exporting Countries, Chinese gross domestic product will average 6.7 percent growth for 2016 and 6.2 percent in 2017.

Oil has more room to run

Crude oil has risen nearly 15% since the Organization of the Petroleum Exporting Countries agreed to cut oil output. We believe that the deal has put a floor under oil prices, and that this will help bolster prices of related assets.

Surprise increase in gasoline prices continues in Pittsburgh area

Average retail gasoline prices in the Pittsburgh region sit around $2.48 a gallon this morning, up about 3 cents in the last week, according to GasBuddy’s survey of more than 700 stations in southwestern Pennsylvania. Pittsburgh-area pump prices are up 9 cents in the last month and 30 cents over the last year, according to the price-tracking website.

Gas prices surge ahead of Christmas, New Year in unusual trend

UNITED STATES GasBuddy officials say gas prices have seen their largest December rise in six years and are likely to continue rising through the holidays. “When The Organization of the Petroleum Exporting Countries announced production cuts November 30, we knew we were likely to see gasoline prices rise almost immediately,” says GasBuddy Senior Petroleum Analyst, Patrick DeHaan.

Oil Seen at $100 by End 2018 in Lottery Ticket Options Trade

Call it a pre-Christmas lottery ticket, but someone in the oil market has been busy making a bold bet, buying contracts that will be profitable if oil surges again to $100 a barrel. The $100 December 2018 call option — a contract that gives the right to buy Dec. 2018 futures at $100 per barrel — was the most traded contract on Tuesday across the whole ICE Brent market, the latest sign of resurgent optimism in oil.

Feature: Economic traps the new government should avoid

In December last year I analyzed the economic vision of the NPP as presented by their vice presidential candidate, Dr Mahamudu Bawumia. The NPP campaigned on a vision of fiscal discipline, macroeconomic stability and debt sustainability all while reducing taxes and restoring some public sector benefits cut by the NDC government.

Libya’s Elephant, Sharara oil fields restart said halted

Libyan oil-facility guards prevented two of the country’s biggest fields from resuming production, days after the National Oil Corp. reached an agreement to restart operations there to boost output in the politically divided OPEC state. The El Feel, or Elephant, and Sharara fields still aren’t operational after they were shut more than a year and a half ago, an NOC official said Sunday by phone, asking not to be identified for lack of authorization to speak to news media.

Ecopetrol – A High-Risk Investment

It has been a tough two years for energy companies globally with sharply weaker oil placing considerable pressure on margins and the economic viability of a range of oil assets. One integrated energy company that has been hit particularly hard is Colombian government controlled integrated energy major Ecopetrol .